Loans and Related Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2024

Loans And Related Allowances For Loan Losses [Abstract]

Loan Portfolio Segments

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
September 30, 2024
Individually evaluated for impairment	$	599	$	—	$	4,849	$	1,993	$	—	$	7,441
Collectively evaluated for impairment		502,229		92,909		273,145		517,175		54,984		1,440,442
Total loans	$	502,828	$	92,909	$	277,994	$	519,168	$	54,984	$	1,447,883
December 31, 2023
Individually evaluated for impairment	$	826	$	—	$	—	$	2,137	$	—	$	2,963
Collectively evaluated for impairment		492,877		77,060		274,604		497,734		61,429		1,403,704
Total loans	$	493,703	$	77,060	$	274,604	$	499,871	$	61,429	$	1,406,667

Loan Portfolio Summarized by the Past Due Status

(in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days+ Past Due		Total Past Due and Accruing		Non- Accrual		Total Loans
September 30, 2024
Commercial real estate:
Non-owner-occupied	$	293,919	$	1,387	$	—	$	—	$	1,387	$	—	$	295,306
All other CRE		205,688		832		319		—		1,151		683		207,522
Acquisition and development:
1-4 family residential construction		15,091		—		—		—		—		—		15,091
All other A&D		77,676		—		54		—		54		88		77,818
Commercial and industrial		272,856		186		103		—		289		4,849		277,994
Residential mortgage:
Residential mortgage - term		451,358		70		825		414		1,309		2,308		454,975
Residential mortgage - home equity		63,568		267		260		13		540		85		64,193
Consumer		54,282		281		250		111		642		60		54,984
Total	$	1,434,438	$	3,023	$	1,811	$	538	$	5,372	$	8,073	$	1,447,883
December 31, 2023
Commercial real estate:
Non-owner-occupied	$	296,343	$	—	$	—	$	—	$	—	$	227	$	296,570
All other CRE		196,123		411		—		—		411		599		197,133
Acquisition and development:
1-4 family residential construction		18,224		—		—		—		—		—		18,224
All other A&D		58,723		—		—		—		—		113		58,836
Commercial and industrial		274,465		120		19		—		139		—		274,604
Residential mortgage:
Residential mortgage - term		433,878		130		717		384		1,231		2,720		437,829
Residential mortgage - home equity		61,021		520		158		75		753		268		62,042
Consumer		60,576		463		277		84		824		29		61,429
Total	$	1,399,353	$	1,644	$	1,171	$	543	$	3,358	$	3,956	$	1,406,667

Primary Segments of the Allowance for Loan Loss

(in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Total
September 30, 2024
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,907		944		4,471		6,841		847		18,010
Total ACL	$	4,907	$	944	$	4,471	$	6,841	$	847	$	18,010
December 31, 2023
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		5,120		940		3,717		6,774		929		17,480
Total ACL	$	5,120	$	940	$	3,717	$	6,774	$	929	$	17,480

Schedule of amortized cost basis of collateral-dependent individually evaluated loans

	September 30, 2024
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance
Commercial real estate	$	599	$	—	$	599
Commercial and industrial		—		4,849		4,849
Residential mortgage		1,993		—		1,993
Total Loans	$	2,592	$	4,849	$	7,441

	December 31, 2023
(in thousands)	Real Estate			Other Collateral	Non-Accrual Loans with No Allowance
Commercial real estate	$	826	$	—	$	826
Residential mortgage		2,137		—		2,137
Total Loans	$	2,963	$	—	$	2,963

Allowance for Loan Losses Summarized by Loan Portfolio Segments

Nine months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
Beginning balance at January 1, 2024	$	5,120	$	940	$	3,717	$	6,774	$	929	$	—	$	17,480
Loan charge-offs		—		—		(1,297)		(45)		(1,193)		—		(2,535)
Recoveries collected		37		48		203		68		302		—		658
Credit loss (credit)/expense		(250)		(44)		1,848		44		809		—		2,407
ACL balance at September 30, 2024	$	4,907	$	944	$	4,471	$	6,841	$	847	$	—	$	18,010
Beginning balance at January 1, 2023 prior to adoption of ASC 326	$	6,345	$	979	$	2,845	$	3,160	$	877	$	430	$	14,636
Impact of adopting ASC 326		(1,143)		(15)		1,334		2,112		208		(430)		2,066
Loan charge-offs		(87)		—		(301)		(55)		(681)		—		(1,124)
Recoveries collected		5		8		176		56		153		—		398
Credit loss (credit)/expense		(82)		93		(577)		1,369		367		—		1,170
ACL balance at September 30, 2023	$	5,038	$	1,065	$	3,477	$	6,642	$	924	$	—	$	17,146

Three months ended (in thousands)	Commercial Real Estate		Acquisition and Development		Commercial and Industrial		Residential Mortgage		Consumer		Unallocated		Total
ACL balance at July 1, 2024	$	4,852	$	992	$	3,964	$	7,162	$	953	$	—	$	17,923
Loan charge-offs		—		—		(67)		—		(369)		—		(436)
Recoveries collected		—		42		170		41		75		—		328
Credit loss expense/(credit)		55		(90)		404		(362)		188		—		195
ACL balance at September 30, 2024	$	4,907	$	944	$	4,471	$	6,841	$	847	$	—	$	18,010
ACL balance at July 1, 2023	$	4,946	$	1,134	$	3,549	$	6,417	$	859	$	—	$	16,905
Loan charge-offs		—		—		(135)		(31)		(163)		—		(329)
Recoveries collected		—		1		167		20		60		—		248
Credit loss expense/(credit)		92		(70)		(104)		236		168		—		322
ACL balance at September 30, 2023	$	5,038	$	1,065	$	3,477	$	6,642	$	924	$	—	$	17,146

Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating

(in thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Total Portfolio Loans
September 30, 2024
Commercial real estate:
Non-owner-occupied
Pass	$	22,535	$	23,649	$	66,797	$	29,249	$	52,446	$	95,151	$	2,053	$	291,880
Special Mention		—		—		—		—		719		—		—		719
Substandard		—		—		—		—		—		2,707		—		2,707
Total non-owner occupied		22,535		23,649		66,797		29,249		53,165		97,858		2,053		295,306
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other CRE
Pass		18,646		31,208		30,295		23,605		17,114		74,405		5,999		201,272
Special Mention		997		—		—		1,431		200		—		—		2,628
Substandard		—		—		—		—		—		3,549		73		3,622
Total all other CRE		19,643		31,208		30,295		25,036		17,314		77,954		6,072		207,522
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		6,248		8,373		—		—		—		—		470		15,091
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		6,248		8,373		—		—		—		—		470		15,091
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		13,552		26,093		16,925		1,882		1,840		9,526		7,912		77,730
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		88		—		88
Total all other A&D		13,552		26,093		16,925		1,882		1,840		9,614		7,912		77,818
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		22,943		43,695		71,895		19,146		7,354		15,291		72,952		253,276
Special Mention		—		—		—		—		1,911		—		9,152		11,063
Substandard		128		—		3,993		886		6,573		728		1,347		13,655
Total commercial and industrial		23,071		43,695		75,888		20,032		15,838		16,019		83,451		277,994
Current period gross charge-offs		465		—		124		651		41		16		—		1,297
Residential mortgage:
Residential mortgage - term
Pass		25,180		65,885		95,883		81,319		36,602		141,984		2,121		448,974
Special Mention		—		—		—		39		—		—		—		39
Substandard		—		—		61		1,062		15		4,770		54		5,962
Total residential mortgage - term		25,180		65,885		95,944		82,420		36,617		146,754		2,175		454,975
Current period gross charge-offs		—		—		—		—		—		30		—		30
Residential mortgage - home equity
Pass		174		849		4,067		1,288		374		644		56,172		63,568
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		34		13		578		625
Total residential mortgage - home equity		174		849		4,067		1,288		408		657		56,750		64,193
Current period gross charge-offs		—		—		15		—		—		—		—		15
Consumer:
Pass		9,307		12,389		7,324		4,146		1,287		17,495		2,790		54,738
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		158		6		44		25		3		10		246
Total consumer		9,307		12,547		7,330		4,190		1,312		17,498		2,800		54,984
Current period gross charge-offs		154		251		78		227		14		469		—		1,193
Total Portfolio Loans
Pass		118,585		212,141		293,186		160,635		117,017		354,496		150,469		1,406,529
Special Mention		997		—		—		1,470		2,830		—		9,152		14,449
Substandard		128		158		4,060		1,992		6,647		11,858		2,062		26,905
Total Portfolio Loans	$	119,710	$	212,299	$	297,246	$	164,097	$	126,494	$	366,354	$	161,683	$	1,447,883
Current YTD Period:
Current period gross charge-offs	$	619	$	251	$	217	$	878	$	55	$	515	$	—	$	2,535

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
December 31, 2023
Commercial real estate:
Non-owner-occupied
Pass	$	23,511	$	65,878	$	30,332	$	54,270	$	40,575	$	65,134	$	1,138	$	280,838
Special Mention		—		—		—		—		—		4,331		—		4,331
Substandard		—		—		—		—		—		11,401		—		11,401
Total non-owner occupied		23,511		65,878		30,332		54,270		40,575		80,866		1,138		296,570
Current period gross charge-offs		—		—		—		—		—		87		—		87
All other CRE
Pass		30,130		27,379		27,042		20,691		22,879		60,054		4,495		192,670
Special Mention		—		—		—		644		—		—		—		644
Substandard		—		—		—		—		1,847		1,372		600		3,819
Total all other CRE		30,130		27,379		27,042		21,335		24,726		61,426		5,095		197,133
Current period gross charge-offs		—		—		—		—		—		—		—		—
Acquisition and development:
1-4 family residential construction
Pass		13,745		3,446		—		—		—		—		1,033		18,224
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Total acquisition and development		13,745		3,446		—		—		—		—		1,033		18,224
Current period gross charge-offs		—		—		—		—		—		—		—		—
All other A&D
Pass		12,184		25,099		2,966		3,046		1,301		9,946		4,181		58,723
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		113		—		113
Total all other A&D		12,184		25,099		2,966		3,046		1,301		10,059		4,181		58,836
Current period gross charge-offs		—		—		—		—		—		—		—		—
Commercial and industrial:
Pass		52,004		66,559		24,387		11,753		8,872		10,052		78,992		252,619
Special Mention		558		—		—		—		—		—		—		558
Substandard		—		9,352		1,854		6,806		98		837		2,480		21,427
Total commercial and industrial		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Current period gross charge-offs		100		103		35		166		—		19		—		423
Residential mortgage:
Residential mortgage - term
Pass		51,625		94,723		88,835		38,228		25,375		130,402		1,577		430,765
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		138		929		17		98		5,825		57		7,064
Total residential mortgage - term		51,625		94,861		89,764		38,245		25,473		136,227		1,634		437,829
Current period gross charge-offs		—		—		—		—		—		13		—		13
Residential mortgage - home equity
Pass		1,127		4,657		864		475		286		489		53,467		61,365
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		38		—		16		623		677
Total residential mortgage - home equity		1,127		4,657		864		513		286		505		54,090		62,042
Current period gross charge-offs		—		—		—		—		—		42		—		42
Consumer:
Pass		18,299		10,616		6,361		2,206		510		20,365		2,873		61,230
Special Mention		—		—		—		—		—		—		—		—
Substandard		14		35		113		23		6		2		6		199
Total consumer		18,313		10,651		6,474		2,229		516		20,367		2,879		61,429
Current period gross charge-offs		236		223		74		8		4		329		—		874
Total Portfolio Loans
Pass		202,625		298,357		180,787		130,669		99,798		296,442		147,756		1,356,434
Special Mention		558		—		—		644		—		4,331		—		5,533
Substandard		14		9,525		2,896		6,884		2,049		19,566		3,766		44,700
Total Portfolio Loans	$	203,197	$	307,882	$	183,683	$	138,197	$	101,847	$	320,339	$	151,522	$	1,406,667
Current YTD Period:
Current period gross charge-offs	$	336	$	326	$	109	$	174	$	4	$	490	$	—	$	1,439

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past.

The following tables present loan balances by year of origination segregated by performing and non-performing loans for the periods presented:

(in thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Total Portfolio Loans
September 30, 2024
Commercial real estate:
Non-owner-occupied
Performing	$	22,535	$	23,649	$	66,797	$	29,249	$	53,165	$	97,858	$	2,053	$	295,306
Nonperforming		—		—		—		—		—		—		—		—
Total non-owner occupied		22,535		23,649		66,797		29,249		53,165		97,858		2,053		295,306
All other CRE
Performing		19,643		31,208		30,295		25,036		17,314		77,271		6,072		206,839
Nonperforming		—		—		—		—		—		683		—		683
Total all other CRE		19,643		31,208		30,295		25,036		17,314		77,954		6,072		207,522
Acquisition and development:
1-4 family residential construction
Performing		6,248		8,373		—		—		—		—		470		15,091
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		6,248		8,373		—		—		—		—		470		15,091
All other A&D
Performing		13,552		26,093		16,925		1,882		1,840		9,526		7,912		77,730
Nonperforming		—		—		—		—		—		88		—		88
Total all other A&D		13,552		26,093		16,925		1,882		1,840		9,614		7,912		77,818
Commercial and industrial:
Performing		23,071		43,695		71,895		19,176		15,838		16,019		83,451		273,145
Nonperforming		—		—		3,993		856		—		—		—		4,849
Total commercial and industrial		23,071		43,695		75,888		20,032		15,838		16,019		83,451		277,994
Residential mortgage:
Residential mortgage - term
Performing		25,180		65,885		95,944		82,140		36,464		144,494		2,146		452,253
Nonperforming		—		—		—		280		153		2,260		29		2,722
Total residential mortgage - term		25,180		65,885		95,944		82,420		36,617		146,754		2,175		454,975
Residential mortgage - home equity
Performing		174		849		4,067		1,288		374		644		56,699		64,095
Nonperforming		—		—		—		—		34		13		51		98
Total residential mortgage - home equity		174		849		4,067		1,288		408		657		56,750		64,193
Consumer:
Performing		9,307		12,464		7,324		4,190		1,310		17,418		2,800		54,813
Nonperforming		—		83		6		—		2		80		—		171
Total consumer		9,307		12,547		7,330		4,190		1,312		17,498		2,800		54,984
Total Portfolio Loans
Performing		119,710		212,216		293,247		162,961		126,305		363,230		161,603		1,439,272
Nonperforming		—		83		3,999		1,136		189		3,124		80		8,611
Total Portfolio Loans	$	119,710	$	212,299	$	297,246	$	164,097	$	126,494	$	366,354	$	161,683	$	1,447,883

(in thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Total Portfolio Loans
December 31, 2023
Commercial real estate:
Non-owner-occupied
Performing	$	23,511	$	65,878	$	30,332	$	54,270	$	40,575	$	80,639	$	1,138	$	296,343
Nonperforming		—		—		—		—		—		227		—		227
Total non-owner occupied		23,511		65,878		30,332		54,270		40,575		80,866		1,138		296,570
All other CRE
Performing		30,130		27,379		27,042		21,335		24,726		60,827		5,095		196,534
Nonperforming		—		—		—		—		—		599		—		599
Total all other CRE		30,130		27,379		27,042		21,335		24,726		61,426		5,095		197,133
Acquisition and development:
1-4 family residential construction
Performing		13,745		3,446		—		—		—		—		1,033		18,224
Nonperforming		—		—		—		—		—		—		—		—
Total acquisition and development		13,745		3,446		—		—		—		—		1,033		18,224
All other A&D
Performing		12,184		25,099		2,966		3,046		1,301		9,946		4,181		58,723
Nonperforming		—		—		—		—		—		113		—		113
Total all other A&D		12,184		25,099		2,966		3,046		1,301		10,059		4,181		58,836
Commercial and industrial:
Performing		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Nonperforming		—		—		—		—		—		—		—		—
Total commercial and industrial		52,562		75,911		26,241		18,559		8,970		10,889		81,472		274,604
Residential mortgage:
Residential mortgage - term
Performing		51,625		94,722		89,629		38,245		25,375		133,526		1,603		434,725
Nonperforming		—		139		135		—		98		2,701		31		3,104
Total residential mortgage - term		51,625		94,861		89,764		38,245		25,473		136,227		1,634		437,829
Residential mortgage - home equity
Performing		1,127		4,657		864		475		286		488		53,802		61,699
Nonperforming		—		—		—		38		—		17		288		343
Total residential mortgage - home equity		1,127		4,657		864		513		286		505		54,090		62,042
Consumer:
Performing		18,304		10,616		6,405		2,229		516		20,367		2,879		61,316
Nonperforming		9		35		69		—		—		—		—		113
Total consumer		18,313		10,651		6,474		2,229		516		20,367		2,879		61,429
Total Portfolio Loans
Performing		203,188		307,708		183,479		138,159		101,749		316,682		151,203		1,402,168
Nonperforming		9		174		204		38		98		3,657		319		4,499
Total Portfolio Loans	$	203,197	$	307,882	$	183,683	$	138,197	$	101,847	$	320,339	$	151,522	$	1,406,667

Troubled Debt Restructuring

(in thousands)	Term Extension		Percentage of Total Loan Type	Weighted Average Term and Principal Payment Extension
Nine months ended September 30, 2024
Owner-occupied commercial real estate	$	888	0.43%	12 months
Commercial and industrial		127	0.05%	60 months
Total	$	1,015

(in thousands)	Term Extension		Percentage of Total Loan Type	Weighted Average Term and Principal Payment Extension
Three months ended September 30, 2024
Commercial and industrial	$	127	0.05%	60 months
Total	$	127